Honeymoon. You’re probably thinking of a white sandy beach, right? Sounds pretty great!
Well, honeymoon rates can be a big downer when it comes to home loans.
Lenders introduce honeymoon rates to new customers – luring them in with enticing headline interest rates.
Comparison websites only add to the confusion, making it complex to look for a good home loan rate. These sites generally list the standard offers available from lenders – and if they’re sorted lowest to highest, it’s likely that low “honeymoon” rates will be at the top of the list.
If you’re like most of us, we don’t scroll too far down a screen to look for dearer options. But there lies the danger. Unfortunately, all honeymoons come to an end.
Year two, and the honeymoon is over.
If you enter into a new home loan with a honeymoon rate, for perhaps the first year of your loan, you’ll enjoy an excellent interest rate. But then the honeymoon period expires and your rate changes to a standard variable rate – possibly for the next 24 years.
So, over almost the entire loan, you’re probably worse off than any new customer. In fact, there’s a chance that you will be worse off than most other bank customers.
At Joust, we put you, the homeowner, in charge.
The terrific lenders who have signed up to the new Joust platform have agreed to compete for your business on a “normalised” basis. This means that on the Joust platform you will always be comparing “apples with apples.” At last, no more confusion.
Anytime is a great time to “Joust” your home loan – but if you’re coming towards the end of a honeymoon period with your existing bank, get Jousting.
Find out more about how Joust works and whether it’s for you, or email us at firstname.lastname@example.org.
Let’s find you a home loan that you’ll never fall out of love with.
Mark Bevan, Joust Founder